Capital Research and Management, manager of the American Funds, is under investigation by the Securities and Exchange Commission for possible conflicts of interest in its directed brokerage arrangements, The New York Times reports.

Specifically, regulators are looking at whether the firm rewarded brokerages that pushed its funds unduly with brokerage commissions, failing to get the best execution price on trades for investors. The firm may have been placing its own interests ahead of that of investors, therefore neglecting its fiduciary responsibility.

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